Commentary

9/5/20 Range Expansion

T stands for Total Percent, it’s calculated as ((Highest High /Lowest Low) * 100) – 100.

T for a lower length can never be above T for a higher length. The increase of T on 9/2 is interesting because that was a decent gain but is starting to look like an important blow off, T increased on the up move (which is unusual) and increased again to the down. Sort of like buying a dip, only backwards.

The expansion we are seeing now is a little unusual but not real alarming. Another few percentage points though, and that will start to get more serious quickly.

This is how T played out during the February excitement. Note the x0C on 2/21 had a loss and transitioned to x00. It’s OK to play x0C, but when that loses now you get a traditional buy signal of x00. Getting caught in something like this with wrong direction 3x positions is not what you want.

May and June also each had a similar T situation that we see now. Those weren’t real pleasant but the weakness all seemed to max out at T3 = 8.

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